Volume 14 - Number 23
November 14, 2014
FHFA: Proposed 97 LTV Guidelines To Look at ‘Compensating Factors’
Look for the Federal Housing Finance Agency’s new guidelines for loans with loan-to-values between 95 percent and 97 percent to take into account “compensating factors” to offset reduced borrower equity. In a speech last week at the National Association of Realtors conference in New Orleans, FHFA Director Mel Watt elaborated only a little further on the agency’s recently announced mortgage guidelines, noting they will include safety and soundness standards to best manage the GSEs’ risk.
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